Every investor knows that considerable savings could be made by buying an apartment, townhouse or villa off plan on the Costa del Sol, some developments were selling out before construction was completed.
But in 2009 the days of re-selling before completion for a tax free profit are long gone simply, you should not purchase any property here, unless you intend to keep it for at least 2 to 3 years.

Due to considerable speculation, the world economic crisis and difficulties borrowing money there are now resale properties in many developments at cheaper prices than the developer is currently asking.

Speculators were buying apartments, their only intention to re-sell them, and most developers failed to understand this.
When folks buy property just to re-sell it, the price is more important to them than the quality or location, but end owners want both quality and location.
This was something most speculators failed to understand, talk about the blind leading the blind!

The type of property worst affected is 2 bedroom apartments in the cheaper developments in poor locations.
This is because most speculators purchased in the wrong developments, they were either badly advised or took no advice at all.
It is a fact that developers pay the highest commissions for projects in inferior locations or of lower quality, other projects receive the most publicity and hype, TV advertising is very expensive, guess who paid for it.
Top quality construction on the western Costa del Sol should not have cost more than 2,000 euro per square metre of construction, but some folks paid over 3,500 euro per square metre, not so bad for a prime location in Marbella or Puerto Banus, but very high for apartments overlooking over a golf course in the middle of nowhere!

When buying off plan selecting the right unit, in the right development is not easy,
the location, infrastructure, the history of the developer, local knowledge financing and bank guarantees are all very important, as are the terms and conditions of the sales purchase contract, and the payment terms, all which can and should be negotiated.

Payment terms available are from 10% to 25% down with the balance payable on completion which can be covered by a developers mortgage.
We can negotiate payment term and conditions for you, don't just settle for what you are offered.
For more information on financing see our mortgage guide

NOTE: There are many developments offered for sale, but for a good and safe investment, many fall short on either Quality, Location, do not have Financing and Bank Guarantees in place or an Independent abogado [Spanish Lawyer] would not approve of the terms and conditions of the reservation and / or sales purchase contracts.
Some developers have a poor track record, do you know which?

So from whom should you take advice? here are some factors you should consider

• Choose an agent who is GIPE. or API. qualified and licensed, who was in business here before 2,000 when the Spanish real estate industry was deregulated.
  
• Choose an agent who has good local knowledge and has been in living and in business here for at least 10 years.
  
• Choose an agent who is a member of the Infocasa Directory Database, how else can they hope to be up to date on well over 1900 new developments?.
  
• Large real estate companies, have high overheads and unqualified staff working on a commission basis, they don't care what they sell you, and they won't be here when you have a problem. You want an agent who knows more about this coast than you do!.
• For more information please read our Property Buyers guide

So whether you are looking for a holiday home, rental income, a combination of both, or to relocate here in the sun, we can help you find the right property, on the terms best suited to your circumstances, whether it be off plan, a bargain distressed sale or bank repossession.

The good news is that the speculation has stopped, and a result for now at least we have some great value opportunities for long term investors, at 30% to 50% below previous market values.

Have a look at the New developments directory, we will be able to locate resale's in many of them. Off Plan Investments on the Costa del Sol

Contact us with your preferences and price range in order that we can recommend the most suitable properties for your needs.

Steve Gilbert [Director]
Costa del Sol Property Index S.L.

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